Free parking extended in city car parks to help support struggling businesses

Nelson City Council is hoping the lure of an extra hour of free parking will help ease the pressure on central city businesses heading into the quiet winter months.

On Thursday, the council agreed to trial the extension of free parking to two hours in its four city centre car parks.

The change would take effect from May 15 and run for three months in the Wakatu, Millers Acre, Buxton and Montgomery car parks.

According to the mayor’s report presented to councillors on Thursday, staff estimated adding an extra hour of free parking in the Buxton, Montgomery and Wakatu car parks for three months would cost about $80,000 in lost revenue, plus an extra $1200 for communications about the change.

The cost would be spread with about $46,000 in the current financial year and the remainder in the upcoming financial year (2026/27).

“No money has been budgeted for this initiative,” the report said.

“It will cause a small deficit or be offset by underspending in other areas of council.

“Extending it beyond three months would most likely add to rate increases. Each $100,000 of additional spend adds about 0.1% to the rate increase.”

During the meeting, councillors agreed to add in the Miller’s Acre car park.

The report also noted that a similar move in winter 2023 introduced free parking between 3pm and 5pm, but it “was not overwhelmingly successful” because of the time of day.

Mayor Nick Smith said the move was partly in response to the pressure on households, who were struggling with cost of living increases and the price of fuel.

Earlier in the year, things had been looking up for businesses, but now winter was looking like it could be harder than previous years for businesses – especially with the impacts of road closures from Bridge to Better, he said.

“The council is going the extra mile to try and support those businesses in that area with its publicity and the like, but it’s still damn hard.”

Bridge to Better is a $78 million infrastructure replacement and street revitalisation programme, which it says will allow an additional 1000 homes to be built in the city centre.

The proposal was moved by councillor Mel Courtney, who said it was a “small, practical step” the council could take to help businesses, especially given the disruption caused by Bridge to Better.

“We’re in the midst of a cost of living crisis, a serious cost of living crisis, a fuel crisis, and from this week … the intersection of Trafalgar and Bridge streets will be closed for the next four months adding further disruption and none of this is of the businesses making, yet they’re having to carry the impact of it.”

Councillor Nigel Skeggs said he knew of businesses that were seriously struggling.

“Our retailers are struggling, and now is the time that we need to assist them – where they need some good news.”

But, he urged staff to make use of the three months to collect data on the cost and economic impact of extending free parking.

Simon Duffy from Uniquely Nelson said the extension of free parking to two hours was a great decision.

“Over the last couple of months I have strongly advocated for an extension to two or three free hours on behalf of our local businesses and I am pleased that at least two hours free got over the line before winter.

“Given the various road closures at the moment I think it makes sense that the free parking applies just to the squares so that traffic is filtered to those carparks because of the works.”

Duffy said given the pressures on businesses due to the ongoing road closures and the economy, he would be keen to see the extension continue beyond winter.

By Katie Townshend, Nelson Mail